The Application of the Performance Focused Activities based Costing (PFABC) and its Role in Measuring the Cost of Banking Service and Improving Performance (An Applied Study in Al-Rafidain Bank / Al-Diwaniyah Branch)

The current research aims to address cognitive pillars of performance focused activities based costing (PFABC) in terms concept, importance, steps of its application in banking units and to show the role of this in measuring cost and improving performance. The research was applied in Al-Rafidain Bank / Al-Diwaniyah branch for the fiscal year ending on 31/12/2020. The current research concluded that PFABC helps in accurately measuring the cost of banking service, and helps in measuring the efficiency and effectiveness of the performance of each activity of the economic unit to help measure productivity and take the necessary decisions to improve performance.